Gutierrez Company reported net income of $ 225,000 for 2017. Gutierrez also reported depreciation expense of $ 45,000 and a loss of $ 5,000 on the disposal of equipment. The comparative balance sheet shows a decrease in accounts receivable of $ 15,000 for the year, a $ 17,000 increase in accounts payable, and a $ 4,000 decrease in prepaid expenses.
Instructions
Prepare the operating activities section of the statement of cash flows for 2017. Use the indirect method.
E13-6
the three accounts shown below appear in the general ledger of Herrick Corp. during 2017.
Equipment
Date Credit
Balance
Debit
Jan. 1 Balance 160,000
July 31 Purchase of equipment 70,000 230,000
Sept. 2 |
Cost of equipment constructed |
53,000 |
283,000 |
|
|
Nov. 10 |
Cost of equipment sold |
49,000 |
234,000 |
Accumulated Depreciation— Equipment